Qatar Central Bank To Issue QAR4bn In Bonds, Extends Maturity

Qatar’s central bank plans to issue QAR4 billion ($1.1 billion) worth of local currency government bonds next week, it said on Tuesday, including a new seven-year tranche to build a longer yield curve.

The debt, to be auctioned on Sunday, will include QAR2.1 billion worth of three-year conventional bonds and QAR950 million each of five- and seven-year tranches, the central bank said on its website.

Qatar launched quarterly government bond sales in March 2013 to expand the central bank’s policy arsenal and help banks manage liquidity. Since then, it has usually issued QAR3 billion worth of conventional bonds and QAR1 billion of sukuk each quarter; maturities have been three and five years.

Qatari officials have said they want to develop a deeper and more active local riyal-denominated bond market; lengthening the curve with a seven-year tranche is part of this process.

In the previous bond sale in April, the central bank issued QAR4 billion of solely Islamic bonds; this month’s auction will only involve conventional bonds.

The central bank has also been offering a fixed amount of QAR4 billion worth of Treasury bills in regular monthly sales.